|
on Payment Systems and Financial Technology |
| By: | Laila Aboulaiz; Bunmi Akintade; Hamzah Daud; Monique Lansey; Megan Rodden; Lucas Sawyer; Matthew Yip |
| Abstract: | With the proliferation of digital payments, internet-based technology has been integral in supporting the delivery of these transactions. Traditional digital payments, such as those made with credit cards, debit cards, and mobile wallets, often require an internet connection to settle transactions. Processors must communicate between banks to carry out a payment, relying on internet connectivity to do so. |
| Date: | 2024–08–16 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgfn:2024-08-16 |
| By: | Kim, Hyunsoo (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Yea, Sangjun (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Kang, Minji (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | 이 연구에서는 데이터가 디지털플랫폼 경쟁에 미치는 영향을 살펴본다. 디지털플랫폼이 사업을 운영하면서 획득한 사용자 데이터를 통해 서비스의 질적 향상에 기여한다면, 시장경쟁에 어떤 영향을 미치는지에 대해 동태분석한다. 연구결과를 바탕으로 데이터 독점으로 인한 글로벌 디지털플랫폼의 시장 지배력을 완화하고 디지털 생태계의 개방성을 보호하기 위한 정책을 수립하는 데 고려해야 할 사항을 제시한다. Recent regulatory proposals on competition in digital markets, such as the EU's Digital Markets Act and Digital Services Act, emphasize the importance of ensuring fair competition in markets to sustain innovation and avoid long-term monopolies. There is a growing concern that markets are becoming increasingly concentrated, with a small number of data-rich companies gaining prominent positions in horizontally or vertically linked markets and large user bases. This report identifies considerations for introducing policies to mitigate the market power of data-rich global digital platforms and protect the openness of digital ecosystems for potential new entrants. To this end, we examine data-related regulatory trends in major countries and theoretically discuss the implications for inter-platform competition when data gives digital platforms a competitive advantage. We then focus on data portability, the most prominent data-related regulation of digital platforms, to explore the impact of data portability regulation on digital platform competition. This study largely consists of five main parts. Chapter 2 outlines the basic characteristics of the platform economy, including its multi- sided nature and indirect network effects, and describes the role of data in the platform economy, in order to better understand the discussion that follows. Indirect externalities are prominent in digital platforms, which are intermediaries that allow multiple independent groups of economic actors to interact through digital connectivity, due to their two-sided market nature. If one side can initially attract a certain number of people to the platform, it becomes easier for both sides to attract additional platform users in a virtuous cycle through indirect network effects, making it easier for market tipping than in other markets. In these digital platform markets, data is utilized to improve the quality of services provided by the digital platforms and to expand their user base. Digital platforms collect, process, and analyze personal-level data generated from users' interactions with the platform after obtaining their consent. As more data is accumulated, search and recommendation results are tailored to the user, which increases the utility or profitability of the platform for both users and merchants. Digital platforms can also collect and use data to create new business opportunities. By merging with other digital platforms, or by entering the market for complementary services, digital platforms can create additional commercial value by combining their own data with that of other platforms. (the rest omitted) |
| Keywords: | data concentration; digital platforms; regulation; platform economy |
| Date: | 2023–12–30 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kieppa:2023_030 |
| By: | Fengqi Xie (Tomsk State University); Marina V. Ryzhkova (Tomsk State University / Tomsk Polytechnic University) |
| Abstract: | With the rapid growth of the digital economy, digital currency has emerged as a prominent area of research. Central Bank Digital Currency (CBDC), issued by the central bank and backed by its liability, has garnered significant attention. This article builds upon Baumol's money demand theory to conduct an extensive analysis of the factors influencing the choice between cash and CBDC, as well as the selection of currency usage. It finds that the decision to adopt either cash or CBDC is often driven by the lower holding costs associated with the latter. Additionally, various factors such as public perception, government policies, and social acceptance contribute to the prolonged coexistence of cash and CBDC. Although CBDC in their current state may not completely replace traditional currencies, they are projected to have a substantial impact on the future of financial transactions. |
| Keywords: | Digitalization, central bank digital currency, CBDC, cash, Baumol's money demand theory |
| URL: | https://d.repec.org/n?u=RePEc:sek:iefpro:14416317 |
| By: | Tobias Berg; Jan Keil; Felix Martini; Manju Puri |
| Abstract: | We analyze the effect of a major central bank digital currency (CBDC) – the digital euro – on the payment industry to find remarkably heterogeneous effects. Stock prices of U.S. payment firms decrease, while stock prices of European payment firms increase in response to positive announcements on the digital euro. Bank stocks do not react. We estimate a loss in market capitalization of USD 127 billion for U.S. payment firms, vis-à-vis a gain of USD 23 billion for European payment firms. Our results emphasize the medium-of-exchange function of CBDCs and point to a novel geopolitical dimension of CBDCs: enhanced autonomy in payments. |
| JEL: | G1 G20 G21 G22 G23 G24 G28 G29 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32857 |
| By: | Christopher J. Waller |
| Date: | 2024–08–28 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgsq:98750 |
| By: | Bianchi, Milo; Rhodes, Andrew |
| Abstract: | We consider a model in which consumers live in isolated villages and need to send money to each other. Each village has (at most) one digital payment provider, which acts as a bridge to other villages. With fully rational consumers interoperability is beneficial: it raises financial inclusion, which in turn increases consumer surplus. With behavioural consumers who have imperfect information or incorrect beliefs about off-net fees, interoperability can reduce consumer welfare. Policies that cap transaction fees have an ambiguous effect on consumers, depending on how the cap is implemented, whether consumers are rational, and on how asymmetric providers are in terms of coverage. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:tse:wpaper:129664 |
| By: | Matea Mati? ?o?i? (University of Dubrovnik); Marija Be?i? (University of Dubrovnik); Perica Vojini? (University of Dubrovnik) |
| Abstract: | In recent years, social media platforms have been increasingly utilised and have become an indispensable communication tool for companies and users. Nowadays, user-generated content is rapidly increasing and users are becoming the main actors by creating and uploading reviews of products and services. The aim of this study is to identify differences between users? motives in relation to their attitudes towards reviews on social media. The data was collected using a questionnaire with a sample of 207 respondents. The questionnaire was created using the Google Forms tool and distributed via social media, Facebook and Instagram. The study was conducted in April and May 2022. Multivariate statistics, factor analysis and analysis of variance (ANOVA) were used. In the factor analysis of the SMMA measurement scale, three factors were extracted: the interactivity factor, the informativeness factor and the experiential factor. The analysis of variance showed that there are significant differences between the factors and review intention and the number of reviews posted on social media, which are expected between the informativeness factor and the number of reviews. The results show the influence of reviews and the number of reviews on consumers? purchasing decisions. Further recommendations and implications are discussed. |
| Keywords: | social media, SMMA scale, purchase behaviour, intention to review |
| URL: | https://d.repec.org/n?u=RePEc:sek:iefpro:14416294 |
| By: | Julia M. Puaschunder (Columbia University, USA) |
| Abstract: | The age of digitalization has led to a rising big data insights trend. Our constant use of digital tools to master our world and our all communication via modern technologies has increased data transfer to be stored and analyzed. As never before, we are now able to derive inferences from big data. The most profitable corporations in the world are currently big data analyzing entities. In an effort to redistribute some of the gains of big data inferences to those who create the information and share their information output on a constant basis, several solutions have been proposed. Granting property rights to information retrieved online is one of the most promising solutions to cope with the fact that corporate capital is gained from our all information sharing online on a constant basis. When considering the establishment of private property rights of one’s own data, the advantage lies in the controllability of information sharing and the monetization of information shared online. At the same time, inequality may be imbued in the idea to ‘sell’ private property data to big data analyzing entities. First, private property rights in data created online could lead to a divide between those who create more interesting and meaningful information by actively using the internet rather than passively consuming it. And people may differ in the degree of useful connections and meaningful conversations with them. Divides between US internet users versus European ones, which already now are skewed towards the US being more active internet users in comparison to Europeans being more passive ones, will rise. The education and income gap may also exacerbate if those with more skilled mindsets or those who can afford more sophisticated technology will be able to produce qualitatively and quantitatively richer data sources. Second, enabling to sell big data would incentivize a productive, active and meaningful use of the internet, which would set positive incentives to develop human capital in general. At the same time, however, there is the problem of abuse in markets. The reason why certain goods are not traded in markets is the fear over abuse and exploitation of minors or specially gifted. Like the restrictions of being able to sell one’s organs in markets as for the fear that people may then start harvesting and exploiting dependents with limited mental capacity; similar restrictions may apply to the sales of internet data. Parents or custodians should not be incentivized to capitalize on their dependents’ data. Third, data brokerage may become a lucrative business if one can sell data online. However, data brokerage platforms may favor certain digitalization hubs in the world which have the legal capacity and technological sophistication to implement high-tech market capitalization from data efficiently and effectively. This logistic peculiarity may hold risks of unjust enrichment of some advanced nations over other less digitalized areas of the world, which may drive the existing economic power divide in the international arena even further in the future. Potential remedies of alternative remedies are to tax big data gains and redistribute some of the gains to those equally whose data serves as building block for big data insights. |
| Keywords: | big data, data storage, digitalization, Digital Markets Act, inequality, internet, knowledge, law, economics, privacy, private property rights, redistribution, sustainability, taxation, wealth transfer |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:smo:raiswp:0415 |
| By: | Cotten, Timothy Michael II |
| Abstract: | Implementing provable fairness in the minting process of non-fungible tokens (NFTs) enables the procedural generation of NFT metadata that can be verified in a decentralized manner, even when stored off-chain. Until now, smart contracts have required additional on-chain data, such as integrity digests, to support the verification of off-chain NFT metadata. Due to the high costs of on-chain data storage, most NFTs do not implement such validation methods, reducing trust in the NFT's off-chain metadata and increasing reliance on centralization. We propose a new method, inspired by the virtual ecology design of sandbox massively multiplayer online role-playing games (MMORPGs). This method utilizes a 256-bit unsigned integer representing a seed value, a Web3-compatible implementation of a pseudorandom number generator (W3PRNG), and an executable ruleset containing attribute definitions and their probability spaces to procedurally generate NFTs. This methodology provides users with a provably fair way of generating NFTs in an open-ended minting smart contract by imitating Proof-of-Work mining, including an arbitrary amount of work to be performed while initializing the PRNG. Due to the extremely large state space of 2^256 possible seeds, any implementation makes the NFT's economy inherently inflationary, offering more attractive features and higher utility in Web3 and Metaverse design than existing fixed supply NFT collections. Furthermore, such a system implicitly guarantees the veracity of off-chain metadata based on the on-chain seed value and the smart contract's immutable integrity configuration. (First published to the Future of Gaming Discord community in November, 2022) |
| Date: | 2022–11–28 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:rn4qc |
| By: | Dimitar Kitanovski; Igor Mishkovski; Viktor Stojkoski; Miroslav Mirchev |
| Abstract: | Maintaining a balance between returns and volatility is a common strategy for portfolio diversification, whether investing in traditional equities or digital assets like cryptocurrencies. One approach for diversification is the application of community detection or clustering, using a network representing the relationships between assets. We examine two network representations, one based on a standard distance matrix based on correlation, and another based on mutual information. The Louvain and Affinity propagation algorithms were employed for finding the network communities (clusters) based on annual data. Furthermore, we examine building assets' co-occurrence networks, where communities are detected for each month throughout a whole year and then the links represent how often assets belong to the same community. Portfolios are then constructed by selecting several assets from each community based on local properties (degree centrality), global properties (closeness centrality), or explained variance (Principal component analysis), with three value ranges (max, med, min), calculated on a maximal spanning tree or a fully connected community sub-graph. We explored these various strategies on data from the S\&P 500 and the Top 203 cryptocurrencies with a market cap above 2M USD in the period from Jan 2019 to Sep 2022. Moreover, we study into more details the periods of the beginning of the COVID-19 outbreak and the start of the war in Ukraine. The results confirm some of the previous findings already known for traditional stock markets and provide some further insights, while they reveal an opposing trend in the crypto-assets market. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2408.11739 |
| By: | Demary, Markus; Demary, Vera |
| Abstract: | Die Fußballspieler des FC Bayern München werben für die Kryptobörse Bitpanda, Crypto.com warb mit dem Rapper Eminem während der NBA-Playoffs der Los Angeles Lakers, deren Spielstätte im Jahr 2021 in "Crypto.com Arena" umbenannt wurde. Die Krypto-Community professionalisiert sich zunehmend. Meist stehen junge Menschen im Fokus: Denn bei den unter 35-Jährigen finden sich in Deutschland 1, 8 Millionen Kryptobesitzer im Vergleich zu 300.000 Anleihe- und 2, 8 Millionen Aktienbesitzern in dieser Altersklasse. Aufgrund der Beliebtheit von Kryptowerten bei jungen Menschen wird in diesem Policy Paper die Frage untersucht, inwieweit die EU Krypto-Anleger geschützt sind und wo noch Herausforderungen bestehen. Dabei spielt auf europäischer Ebene vor allem die Markets for Crypto Assets Regulation (MiCAR) eine Rolle für die Regulierung von Kryptowerten, die zum Beispiel Krypto-Handelsplattformen mit Sitz in der EU, aber auch andere Krypto-Dienstleistungen erfasst und für diese klare Vorgaben im Sinne des Anlegerschutzes macht. Für Finanzprodukte auf Basis von Kryptowerten kommen je nach Ausgestaltung andere Regulierungen zur Anwendung. Auch Geldwäscheprävention und Besteuerung von Kryptowerten sind inzwischen im Fokus der EU und weitestgehend geregelt. Daneben ist ein weiteres Phänomen relevant, nämlich die Werbung für Krypto-Investments über Influencer. Im Jahr 2023 haben sich etwa 10 Prozent der Erwachsenen bis 64 Jahre über Influencer zu Finanzthemen informiert, so dass auch die Regulierung von Influencern, die auf EU-Ebene nicht zentral, sondern in vielen Einzelvorschriften geregelt ist, von Relevanz für die Analyse ist. [...] |
| Abstract: | FC Bayern Munich footballers advertise for the crypto exchange Bitpanda, Crypto.com advertised with rapper Eminem during the NBA playoffs of the Los Angeles Lakers basketball team, whose arena was renamed "Crypto.com Arena" in 2021. The crypto community is becoming increasingly professionalized. The focus is mostly on young people: in Germany, there are 1.8 million crypto holders in the under-35 age group compared to 300, 000 bond holders and 2.8 million share holders in this age group. Due to the popularity of crypto assets among young people, this policy paper therefore examines the extent to which the EU protects crypto investors and where challenges still exist. At European level, the Markets for Crypto Assets Regulation (MiCAR) in particular plays a role in the regulation of crypto assets, which covers crypto trading platforms based in the EU, for example, but also other crypto services and sets clear requirements for these in terms of investor protection. Other regulations apply to financial products based on crypto assets, depending on their structure. The prevention of money laundering and taxation of crypto assets are now also the focus of the EU and are largely regulated. Another phenomenon is also relevant, namely the advertising of crypto investments via influencers. In 2023, around 10% of adults up to the age of 64 will have obtained information on financial topics via influencers, meaning that the regulation of influencers, which is not regulated centrally at EU level but in many individual regulations, is also relevant to the analysis. [...] |
| Keywords: | Digitalisierung, Europäische Union, Finanzmarkt, Geldpolitik, Unternehmen und Märkte |
| JEL: | E42 E44 E51 L51 O33 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:iwkpps:302188 |
| By: | Janina Seutter (Paderborn University) |
| Abstract: | Although online reviews in business-to-consumer (B2C) markets have reached an advanced state of maturity in theory and practice, the study of reviews in business-to-business (B2B) markets is only just emerging. Such studies are needed to understand review writing in the context of B2B, characterized by the diversity of stakeholders and the complexity of their relationships. In this research, I investigate the motives for writing reviews on B2B online review platforms. In-depth interviews with 26 B2B review writers reveal three types of motives: (1) those that are similar to the prevailing motives from B2C, (2) those that differ from B2C but share some similarities, and (3) those that are new to the online review literature. In the latter category, I find motives such as the desire to offer “Feedback to the Supplier, ” an “Appreciation of the Relationship with the Supplier, ” and, more broadly, the desire to “Contribute to a B2B Review Community”. The study contributes to marketing theory by demonstrating that motives for writing online reviews in the B2B context differ from those in the B2C context while sharing some similarities. It contributes valuable practical insights to the two main stakeholder groups, i.e., suppliers and review platform providers. By better understanding the motives behind B2B online reviews, both stakeholder groups can improve their processes and offerings and, specifically, elicit reviews in a more targeted and effective manner. |
| Keywords: | online reviews, e-WOM, B2B, motives, qualitative study |
| JEL: | D12 M15 M31 O32 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:pdn:dispap:118 |
| By: | Khafif Hassan (University Hassan II [Casablanca], FSJES AIN SEBAA, Hassan II University –Casablanca); Ouazzani Touhami Naoual (University Hassan II [Casablanca], FSJES AIN SEBAA, Hassan II University –Casablanca) |
| Abstract: | This literature review investigates the role of e-inclusion initiatives in promoting socioeconomic inclusion for young people, focusing on effective technology leveraging. It addresses how e-inclusion initiatives can advance youth socioeconomic inclusion and identifies key success factors. The review analyzes peer-reviewed articles, policy reports, and case studies to synthesize current knowledge on e-inclusion strategies, implementation, and outcomes. Findings reveal that successful e-inclusion initiatives extend beyond providing technological access, incorporating digital literacy education, culturally sensitive design, and integration with broader socioeconomic support systems. Key success factors include tailored community-specific approaches, sustained engagement, relevant digital skill development, and multi-stakeholder collaboration. Challenges such as rapidly evolving technology, persistent socioeconomic barriers, and the need for long-term impact assessment are highlighted. The study explores various e-inclusion dimensions, including hardware/software access, internet connectivity, digital competencies, and online safety, examining their intersection with traditional socioeconomic indicators. It also considers policy implications and integration into national digital strategies and educational curricula. By analyzing global case studies, the review identifies best practices and lessons learned. It contributes to digital inclusion literature by providing a comprehensive overview of current practices and identifying research gaps. The study concludes by proposing a framework for future initiatives and suggesting further research directions to enhance technology-driven approaches in advancing youth socioeconomic inclusion. It emphasizes the need for interdisciplinary approaches to develop holistic and sustainable e-inclusion strategies. |
| Keywords: | E-inclusion, Digital divide, Social equity, Youth empowerment, Socioeconomic inclusion |
| Date: | 2024–08–11 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04670617 |
| By: | Javier López González; Silvia Sorescu; Chiara Del Giovane |
| Abstract: | The digital transformation is having a profound impact on the international trade of the United Kingdom (UK). Digital trade exports have grown three times faster than other exports and now represent more than half of total exports, twice the OECD and EU averages. This strong performance is, in part, driven by a favourable domestic regulatory environment and an ambitious digital trade agenda in the United Kingdom’s trade and digital economy agreements. Econometric analysis shows that digital trade chapters in trade agreements can double the impact of the agreements, with issues around data protection, consumer protection, source code and cybersecurity potentially delivering the largest gains. To remain at the forefront of digital trade the United Kingdom should continue domestic reforms, including digitisation of trade documents and processes. To ensure that exporters maintain access to other markets, the United Kingdom should continue to engage in discussions on digital trade provisions in trade agreements and support ongoing multilateral and plurilateral discussions, including in the context of the WTO Work Programme on E-commerce and the Agreement on E-commerce. |
| Keywords: | Data flows, Digital connectivity, E-commerce, Services trade, Trade agreements |
| JEL: | C54 F13 F14 F15 F68 O3 |
| Date: | 2024–09–05 |
| URL: | https://d.repec.org/n?u=RePEc:oec:traaab:285-en |
| By: | Sebastian Benz; Alexander Jaax; Elisabeth van Lieshout |
| Abstract: | The contribution of services in the United Kingdom (UK) to exports, value added, and employment is one of the highest amongst OECD countries. UK employment also depends strongly on exports of digital services: in 2019 the jobs of around 3.2 million domestic workers in digital services sectors were embodied in UK exports. Median wages in these services are considerable higher than wages in other sectors of the UK economy. Econometric analysis shows that strong growth of employment in digital services generates multiplier effects benefitting local economies in the United Kingdom, with each additional digital services job creating around 0.3 jobs in the local non-tradable sector. Continued support for plurilateral and multilateral initiatives to dismantle barriers to services trade, including via the WTO Joint Initiative on Services Domestic Regulation, can help to enable more UK firms to take advantage of the potential for further growth in digital services trade. Improving the availability of training programmes and aligning curricula with the rapidly evolving needs of exporters of digital services is crucial to enable for workers to shift into sectors with growing labour demand. |
| Keywords: | E-commerce, Multipliers, Services Trade, Wages |
| JEL: | E4 F13 F15 F16 J21 L86 R11 |
| Date: | 2024–09–05 |
| URL: | https://d.repec.org/n?u=RePEc:oec:traaab:284-en |
| By: | Tom G. Meling; Magne Mogstad; Arnstein Vestre |
| Abstract: | We quantify the extent of crypto tax noncompliance and evasion, and assess the efficacy of alternative tax enforcement interventions. The context of the study is Norway. This context allows us to address key measurement challenges by combining de-anonymized crypto trading data with individual tax returns, survey data, and information from tax enforcement interventions. We find that crypto tax noncompliance is pervasive, even among investors trading on exchanges that share identifiable trading data with tax authorities. However, since most crypto investors owe little in crypto-related taxes, enforcement strategies need to be well-targeted or cheap for benefits to outweigh costs. |
| JEL: | G5 H2 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32865 |
| By: | Mohammed Ahmar Uddin (Dhofar University) |
| Abstract: | Financial well-being is the satisfaction an individual experiences with their financial position. This study investigated the effect of financial literacy and procrastination on financial well-being and the moderating role of Financial self-efficacy. Financial well-being was measured through the Consumer Financial Protection Bureau's measure of financial well-being. Data for the study was collected from 300 individuals using an online questionnaire. Structural Equation Model analysis was done using SmartPLS 4. The results showed that Financial self-efficacy [F.E.] is moderating the inverse relation of Procrastination [PROC] on Financial Wellbeing [F.W.] into a direct relation, but the effect of Financial Literacy [FL] is getting affected due to the moderation of FSE; it can be interpreted that the study sample contains the investors who are having behavioural biases which lead the F.W. to get reduced with the moderation of FSW on FL. This study provides insights for financial practitioners, educators, and policymakers and can help households improve their financial well-being. |
| Keywords: | Financial Literacy; financial well-being; Financial Self-Efficacy; Procrastination |
| JEL: | D03 G00 |
| URL: | https://d.repec.org/n?u=RePEc:sek:iefpro:14316123 |
| By: | Subir Majumder; Ignacio Aravena; Le Xie |
| Abstract: | In recent years, power grids have seen a surge in large cryptocurrency mining firms, with individual consumption levels reaching 700MW. This study examines the behavior of these firms in Texas, focusing on how their consumption is influenced by cryptocurrency conversion rates, electricity prices, local weather, and other factors. We transform the skewed electricity consumption data of these firms, perform correlation analysis, and apply a seasonal autoregressive moving average model for analysis. Our findings reveal that, surprisingly, short-term mining electricity consumption is not correlated with cryptocurrency conversion rates. Instead, the primary influencers are the temperature and electricity prices. These firms also respond to avoid transmission and distribution network (T\&D) charges -- famously known as four Coincident peak (4CP) charges -- during summer times. As the scale of these firms is likely to surge in future years, the developed electricity consumption model can be used to generate public, synthetic datasets to understand the overall impact on power grid. The developed model could also lead to better pricing mechanisms to effectively use the flexibility of these resources towards improving power grid reliability. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2408.12014 |
| By: | Julia M. Puaschunder (Columbia University, USA) |
| Abstract: | Economics is built on the idea of scarcity. The rational agent is meant to decide efficiently given scarce resources. Friedrich von Hayek challenged mainstream economic scarcity focus by proposing that economics is also about making sense of an abundance of knowledge that is dispersedly shared throughout society. Born out of the internet and digitalization, we live in the age of the advent of big data science. Computational advantages in light of enormous data storage and analytic powers have allowed to gain unprecedented information transfers out of our use of technology. Today’s most profitable corporations in the world all derive value from big data insights. But extracting sense from a massive amount of data generated online on a constant basis has also become an enormous environmental burden, which is often not discussed or thematized. While marketing ensures to frame cloud storage as something light and intangible, the reality is that data hoarding has become an environmentally-burdensome practice that may not be sustainable given the pace digitalization is advancing, e.g., with 5G and Artificial Intelligence (AI) encroaching every aspect of human life. Big data is stored in facilities that resemble warehouses with enormous electricity consumption for the cooling of real-time data processors. In light of the rising trend of data storage as well as environmental conscientiousness demands at the same time, we may revisit Hayek’s idea of the knowledge paradigm and connect it to scarcity. Economics is called for providing models that explain how to make sense of data efficiently. In particular, Friedrich von Hayek’s knowledge paradigm could offer insights on how and what kind of information should be stored to become knowledgeable and what kind of information warrants for scarcity of being neglected to conserve and simply been forgotten over time to be in line with overall efficiency and sustainability demands to pass the earth onto future generations meaningfully and viably. |
| Keywords: | behavioral economics, carbon footprint, data storage, digitalization, discounting, environmental conscientiousness, environmentalism, internet, knowledge, law & economics, scarcity, Sustainable Development Goals, sustainability |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:smo:raiswp:0386 |
| By: | Margetts, Helen; Dunleavy, Patrick |
| Abstract: | Until 2010, Anglosphere digital governments struggled to modernize, dependent on large-scale contract relationships with global Systems Integrators (SIs) and elderly, custom-built legacy systems. Policymakers are now converted to the value of the latest Artificial Intelligence (AI) technologies for improving government. We trace the conversion to Silicon Valley (SV) firms, which drove cultural, organisational and technological developments that reduced the influence of SIs. SV firms’ practices will now drive public management use of data science and AI, shaping financial systems and practices. |
| Keywords: | AI (artificial intelligence) ingovernment; cloudcomputing and government; digital era governance; digital government; publicmanagement reform; publicsector contracting; publicsector IT |
| JEL: | J1 |
| Date: | 2024–08–21 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:124539 |